More important: FICO or mortgage history?

Submitted by Anonymous (not verified) on Wed, 02/03/2010 - 19:59
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We have owned a home since 2003 and have NEVER made a late payment, however when credit card interest rates were skyrocketing we had a few late payments on those and settled a few cards. In about 16 months we are looking to move. If those months are clean for all payments how do we look for renting or buying a home? Will our mortgage history be more important if our scores are still low?

Hello Guest, Unforetunatley I do not think the settled and late accounts will look well for you. Banks take into consideration all different types of items. Late payments, on time payments, credit report, and amount of debt. although not being late is a plus I believe the others will not fair so well. I would continue building a good payment history and wait to attempt financing another home.

Wed, 02/03/2010 - 20:12 Permalink

Hi Guest,

Score is more important than mortgage history. Score depends on mortgage payments too. Whether or not you are late, affects the credit score. Credit score on the other hand, helps one in getting a home, may it be renting or buying a home. So it is advisable not to default on any other payments. Being current on payment will help you a lot in bettering your credit score. However, the settled and late payments that your report is reflecting will not have good impression with banks.

Thu, 02/04/2010 - 05:07 Permalink